To find new investment opportunities, you should always look for the most profitable industries. It usually takes some time and patience: explore industries, economic sectors, and investment funds. Even though it is difficult to predict investment performance, in some areas we can expect a steady increase. Here are the best investments you can make in 2019.
1. ETF
ETFs, or exchange-traded funds, have gained incredible popularity over the past few years. TD Ameritrade experts write that ETFs are a pool of intraday trading securities, such as exchange stocks, designed to track the underlying index. They are similar to mutual funds because their main goal is capital preservation, but their shares trade like a common stock on exchanges. Each ETF is usually focused on a specific sector, asset class or category — such ETFs are geared to grow in the future, and even beginner investors can make a profit.
In particular, utilities ETFs have great prospects. For example, Utilities Select Sector SPDR ETF (XLU) has been growing steadily since 2009. Companies like NextEra Energy, Duke Energy, Dominion Energy have the best XL U offers, covering both standard energy sources — electricity and natural gas — and renewable ones. According to Clear Technica, NextEra is, in fact, the #1 energy corporation in the world.
2. REIT
Many REITs (real estate investment funds), such as UDR. Inc. only benefited from the latest innovations in the housing industry. The percentage and number of tenants are steadily increasing due to the collapse and the subsequent restoration of the American residential real estate market. UDR owns almost 50 thousand apartments and has been trading on exchanges for about 46 years — of which for 33 years the company has been paying dividends. It has immaculate FFO numbers (funds from operations, the equivalent of earnings per share for REIT). The UDR strategy is simple and smart at the same time: they build or buy housing in popular city areas with a troubled housing market, where companies lack either customers or workers — those are big cities like San Francisco, Boston, Los Angeles, Seattle, Washington. According to Yahoo Finance, the UDR share price has been growing steadily over the past three years, after the jump in 2013–2015. As in many progressive cities, the rates for home ownership are falling, while the number of tenants will continue to grow next year, playing into the hands of real estate investment funds.
3. Senior Care Industry
The senior care industry is booming, and not at all at the expense of the speculative mania. People are aging, this is a natural process — according to the World Health Organization, the number of people over 60 years old will reach 2 billion by 2050, which is about 22% of the world population. As a result, there are more and more new investment opportunities for companies targeting this age category. We see a particularly dramatic growth in the elder and home health care sectors. The U.S. Bureau of Labor Statistics predicts that over the next 10 years, the demand for home care workers and social workers will grow by 47% and 39%, respectively. So we can make the following conclusion: health care is the most significant source of expenses for the elderly, and therefore for the global economy in general. According to the Organization for Economic Co-operation and Development, health spending among the 35 member countries can grow up to 14% of GDP by 2060. Thus, should you decide to invest in the senior health care industry, you need to diversify the pharmaceutical and consumer assets of companies such as Johnson & Johnson, Merck, Pfizer, and the United Health Group. In addition to medical care, the elder health care industry offers a wide range of investment opportunities that you should consider in 2019.